Peloton Files Publicly For IPO

Kate Clark |
Techcrunch

Tue, 27 Aug 2019 21:20:15 +0000

Peloton, the well-funded maker of internet-connected bikes and treadmills, has finally revealed documents for its upcoming initial public offering. The business previously submitted a confidential draft submission of its S-1 statement to the U.S. Securities and Exchange Commission in June.

The company, which plans to raise $500 million in what could be a placeholder amount, will trade on the Nasdaq under the ticker symbol PTON.

Peloton reported $915 million in total revenue for the year ending June 30, 2019, an increase of 110% from $435 million in fiscal 2018 and $218.6 million in 2017. Its losses, meanwhile, hit $245.7 million in 2019, up significantly from a reported net loss of $47.9 million last year.

Peloton customers subscribe to the company’s digital library of fitness content for $39 per month in addition to purchasing its hardware, which costs more than $2,200 apiece. The company says 58 million workouts were completed by Peloton users in fiscal 2019, while its subscriber base reached an all-time high of 511,202.

As for subscription revenue, Peloton reports $181 million for fiscal 2019, up from $80 million last year.

Envisioning a world in which 67 million households own connected fitness equipment, Peloton co-founder and chief executive officer John Foley writes in the S-1 that “Peloton sells happiness.”

“Peloton is so much more than a Bike — we believe we have the opportunity to create one of the most innovative global technology platforms of our time,” writes Foley. “It is an opportunity to create one of the most important and influential interactive media companies in the world; a media company that changes lives, inspires greatness, and unites people.”

Peloton, founded in 2012, raised $550 million in venture capital funding last year at a valuation of $4.15 billion. The startup, which initially struggled greatly to convince venture capitalists of its vision, has since inspired a new wave of fitness tech companies to launch, including a smart mirror company appropriately named “Mirror.”

In total, Peloton has raised $994 million in venture capital funding, according to PitchBook. Its S-1 filing lists CP Interactive Fitness, TCV, Tiger, True Ventures and Fidelity as principal stakeholders, or investors with at least a 5% stake in the company.

Goldman Sachs & Co. and J.P. Morgan Securities are managing the IPO as lead underwriters.